Tax Center: ISO Tax Returns

How am I taxed if I make a disqualifying disposition (e.g. sale) of ISO shares in the year I exercised the option? This is premium content

While you lose the opportunity to have the lower long-term capital gains rate apply to the difference between the exercise and sale price, the alternative minimum tax (AMT) no longer applies. You do have compensation income and perhaps short-term capital gains equal to...
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